For each of the following scenarios, determine whether the aggregate demand curve will shift. If so, in which direction will it shift and by how much? a. A change in consumer preferences leads to an...

For each of the following scenarios, determine whether the aggregate demand curve will shift. If so, in which direction will it shift and by how much?

a. A change in consumer preferences leads to an initial $2billion decrease in net exports. The multiplier is 1.5.

b. A change in trade policies leads to an initial $2billion increase in net exports. The multiplier is 1.

c. There is an increase in the domestic price level from 1 to 1.05, while the price level of the country’s major trading partner does not change. The multiplier is 2.

d. Recession in a country’s trading partner lowers exports by $20 billion. The multiplier is 2.